Opportunities bloom in West Midlands

Official Project Partner: West Midlands Combined Authority

Ahead of the UK Infrastructure Show 2018, we speak to the event partners about the importance of infrastructure. In today’s article WMCA HS2 Project Manager, Lisa Hamilton, explains how the West Midlands is responding to the needs of the high-speed rail programme.

The arrival of High Speed Two (HS2) in the West Midlands is expected to create more than 100,000 jobs; to construct the railway, stations and infrastructure requires a vast supply chain to support the main contractors. With the early works already underway, and the main civils work commencing in 2019, there is real pressure on the West Midlands Combined Authority (WMCA) to ensure businesses are ready for HS2.

Lisa Hamilton

The opportunity

HS2 is the largest infrastructure project in Europe. Phase One will run from London to Birmingham, with the first trains operating in 2026. The West Midlands will be home to two HS2 stations in Phase One: the Solihull Interchange, which will be the first stop in the region, and the new Curzon St Station, in Birmingham City Centre.

To deliver HS2, there will be a small number of major packages which cover a number of key areas, including design, enabling works, civil engineering, stations, railway systems, and rolling stock.

Due to the size and capabilities required, these Tier 1 contracts will most likely be awarded to a small number of large companies and joint ventures. However, the vast scale of work required by these contracts will result in tens of thousands of indirect supply chain opportunities, 60% of which are expected to go to SMEs, creating thousands of opportunities for West Midlands businesses.

Our objective

The West Midlands is famous for being the birthplace of the industrial revolution and this heritage of innovation is still very much evident in today’s economy. Our ultimate goal is to strengthen the capabilities of our region’s businesses, in order to provide them with the tools they need to be in the best possible position to capitalise on the delivery of HS2.

We want our region’s businesses to flourish and grow, benefiting from the many opportunities HS2 affords.  The successful delivery of our regional approach will lead to significant economic growth in our local supply chains, creating new job opportunities, up-skilling regional businesses and providing a strong, highly skilled and innovative supply chain fit for the future.

Our approach

In order to ensure our supply chains across the region are ready to capitalise on and effectively support the delivery of HS2, we have put in place a regional HS2 Readiness Programme of support for our local businesses.  The programme is focused on four key areas: Business Engagement & Diagnostics; Access to Finance; Business Upskilling Support; and Procurement Tools.

Business Engagement & Diagnostics – a key part of success in winning new business from HS2 is being ‘HS2 supply chain procurement ready’, which could require improving skills, technology, manufacturing techniques, or understanding HS2’s specific policies, which cover areas such as Health & Safety, and Equality, Diversity & Inclusion (EDI).

To help businesses understand what is needed, we are working in partnership with the three Growth Hubs across the West Midlands Combined Authority, initially to assess current business capabilities against the requirements of the HS2 supply chain, with a view to further supporting these businesses, strengthening areas of weakness and placing them in the strongest position to win new work.

Access to Finance – There exists an extensive range of funding provision available to support our region’s businesses.  This includes funding to support growth aspirations, expansion plans, innovation, advanced technology or processes, and employee training, all of which can help businesses become HS2 supply chain procurement ready. Our Growth Hubs are ideally positioned to work with regional businesses to understand their finance requirements and identify the most suitable support options available, including the HS2 Supply Chain Programme, offering capital & revenue grants of £20,000-£200,000, and the  £20M National Rail Supply Growth Fund initiative, offering finance of between £500k and £2M.

Skills Training, Building Information Modelling (BIM) – With BIM being a key requirement for businesses involved in the construction of HS2 a BIMwm framework has been established in the region. This provides specialist support to accelerate the adoption of BIM throughout the region’s built environment businesses, ensuring our region’s businesses have a tech driven and enabled workforce, enabling them to compete on opportunities such as HS2.

Procurement Tools – All HS2 and Tier One contract opportunities will be made available on the CompeteFor procurement portal.  Building on this, within the region we have launched HVM City, a new online portal covering the West Midlands Combined Authority area allowing suppliers, buyers and investors to market their goods, services and opportunities and providing a forum for supply chains to connect and trade.

As well as all HS2 opportunities, the portal will act as the tool through which any public sector opportunity can be publicised to our local supply base, enhancing the opportunities for business growth in the region.

In addition to the support that we now have in place across the region, the WMCA HS2 Programme Team recognises that the key to our success will be a high level of engagement with businesses across the region. To achieve this will require businesses to be aware of the opportunities, not just in 2018, but throughout the next decade, especially as procurement will really start to accelerate in the coming years.

We will develop ongoing communication and marketing strategies, attend exhibitions/trade shows, such as the UK Infrastructure Show, and reach out directly to business through our Growth Hubs and Chambers of Commerce. We will also be working closely with our colleagues across the combined authority to ensure that our efforts dovetail, with wider WMCA programmes aimed at increasing economic success across the region.

What next?

HS2 is happening, today. We are already seeing West Midlands businesses being awarded contracts as part of the enabling works packages, but in the grand scheme of the project we are just at the beginning. The start of the main works civils contracts, and the construction of the two new stations and the rolling stock and maintenance depot, will see the demands placed on the HS2 supply chain increase dramatically, and with this, an increase in the opportunities available to our businesses.

Our advice to businesses is start thinking about HS2 now, be proactive and find out more about current and future contract opportunities and what will be required from your business in order to be successful in securing a HS2 supply chain contract.  There are many support, training, and funding programmes available for businesses to access today, this is your opportunity to prepare your business and become HS2 ready.

Contact your local Growth Hub, visit hs2.org.uk, register on HVM City, and if you want more advice come and see us at the UK Infrastructure Show.

Don’t forget to visit WMCA at UKIS 2018 to discuss their procurement opportunities: Book now.

To discuss exhibition or sponsorship opportunities please call 0845 270 7066 or email exhibitions@ukinfrastructureshow.co.uk

Alternatively to register as a delegate please click here

If you would like to read more articles like this then please click here.

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SMEs key to solving housing crisis

Cross-party MPs are backing small housebuilders to help solve the housing crisis.

Following release of the ‘Inquiry into support for small housebuilders’, MPs leading the report have urged government to develop a strategy to increase the number of homes built by small builders.

By introducing a new ‘Dedicated Strategy for Small Housebuilders’, the MPs hope to reverse the decline in the number of new homes built by small builders, which has plummeted to just 2,500 today from 12,000 in 1998.

MPs leading the report said: “We have many legitimate disagreements with each other on many aspects of housing policy, but on this we are agreed: we cannot solve the housing shortage without smaller builders.”

The inquiry was supported by the Federation of Small Businesses (FSB), and suggestions made within the report include:

1. Improve access to finance: MPs are calling for a Government backed guarantee on loans to small housebuilders.
2. Action against late payments, with a new “three strikes and you’re out” rule targeting big businesses who repeatedly pay late.
3. Increase apprenticeship opportunities from large to small businesses
4. Remove barriers to building on small sites and help streamline the planning process for smaller firms.

Robert Courts MP, Chair of the APPG, said: “Government action has started to address some of the needs of small builders but we must leave no stone unturned to truly unlock the housing market.

“A new, dedicated strategy for small housebuilders would be an important step in achieving this. This needs to centre on a positive package of measures that removes some the biggest barriers for small builders including the inability to access finance and reducing the cost of developer contributions like the Community Infrastructure Levy.”

Catherine West MP, Vice Chair of the Inquiry, said: “The current state of the UK housing market leaves no doubt that there is huge potential for small builders to make a vital contribution to building the homes we need.

“Our report sets out a series of proposals that will enable small builders to scale up, grow and build more which will help relieve the housing shortage.

“The simple truth is that the UK cannot expect to build the homes we so desperately need unless smaller builders are backed. Giving small builders the keys they need could result in tens of thousands of urgently needed homes being built up and down the UK.

“This will help create jobs, stimulate economic growth and provide the homes the UK need.”

FSB acts as the secretariat for the APPG and supported them on the inquiry.

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said: “Small housebuilders will welcome the cross-party effort to shine a light on the very real challenges that are holding them back from playing their part in building the homes the UK needs.

“It is vital that the Government does not turn a blind eye to the findings of this report and commits to creating a dedicated strategy aimed at giving small homebuilders the finance, skills and support they need to help fix the broken housing market.”

 

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Manufacturing better buildings: apply for funding

Innovate UK has up to £72M to invest in establishing a core innovation hub to support collaboration between industry and academia and transform the construction sector.

The funding is for UK-based research and technology organisations that already have substantive existing facilities and expertise to work with others in the construction sector, such as businesses, the research base or public sector organisations.

Transforming construction

The way we create buildings has not changed in 40 years, and construction has not seen the same increases in productivity as other industries. The sector is also facing a skills crisis due to an ageing workforce.

This competition aims to fund a single, core innovation hub that will develop and commercialise new digital and manufacturing technologies for construction. The hub should focus on how to:

• create better performing built assets
• increase the industry-wide adoption of emerging digital and manufacturing technologies
• design new processes to improve productivity in construction

To be successful in their application, the research and technology organisation will need to demonstrate there is a commitment from the private sector to invest and use the hub once it is complete.

Part of the Industrial Strategy

The transforming construction challenge aims to support the construction industry to adopt the latest digital manufacturing technologies to produce safe, healthy, efficient building.

This will help buildings to be constructed 50% faster, 33% cheaper and with half the lifetime carbon emissions.

It is the part of government’s Industrial Strategy Challenge Fund, which brings together world-leading research with businesses to take on the major societal and economic challenges of our time.

Competition information

• the competition is open, and the deadline for applications is at midday on 23 May 2018
• projects must be led by a research and technology organisation working in collaboration with other businesses, the research base or public sector
• total eligible project costs should be £72 million or less
• projects should start in August 2018 and last up to 4 years
• a briefing event will be held on 28 March 2018 and consortia-building event on 19 April 2018

Find out more about the competition and apply.

 

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Graham Stuart promotes UK infrastructure investment

Official Media Partner

The Minister for Investment has promoted the vast range of infrastructure opportunities in the UK during his address to The Infrastructure Investor Global Summit in Berlin.

The conference, one of the largest private investment summits in the world, hosts 1,400 delegates from more than 140 of the world’s biggest global institutions and private investment firms, who collectively manage more than £500Bn in capital.

During his speech, Minister Stuart promoted the UK as the top investment destination in Europe, thanks to its open, liberal economy, flexible labour market, and business-friendly regulation.

The UK has an excellent record of infrastructure delivery, with over 4,500 projects completed since 2010 and 98% of 158 priority projects either on track for delivery or completed.

As part of the National Infrastructure and Construction Pipeline, some 720 infrastructure projects – with a value over £500Bn – are due to start before 2020/21, and Minister Stuart will take the opportunity to show the potential of UK investment in the future.

Minister for Investment Graham Stuart said: “Since DIT’s foundation in July 2016, the British government now has a department of state solely focused on trade and investment and our network is dedicated to supporting businesses across the globe.

“The UK is Europe’s top destination for foreign investment, and as an international economic department, we are determined that investment in infrastructure is a major part of the Industrial Strategy.

“With more than £500Bn of infrastructure investment opportunities up to 2020/21, and an exemplary record of project completion, I will be telling the world’s most influential investors why the UK should be their first choice for investment.”

One current project underway is the construction of a direct power link between Germany and the UK. The first of its kind, the link is a £1.4Bn investment by a consortium including Meridiam and Allianz Capital Partners and NeuConnect. The project will create new export and import routes for electricity for each market, benefitting UK and German consumers with reduced wholesale and consumer electricity prices.

Chief Executive Officer of NeuConnect Britain, David Inglis, said: “The first direct connection between the UK and German power grids offers great economic benefits for both countries and furthers the integration of renewables by enabling both countries to balance their future energy needs from a new market.

“The long-term investors are very committed to jointly work with the national governments and regulators of both countries to successfully deliver this innovative and independent energy infrastructure project to German and British consumers.”

Don’t forget to visit the UK Infrastructure Show 2018 to find your procurement opportunities: Book now.

To discuss exhibition or sponsorship opportunities please call 0845 270 7066 or email exhibitions@ukinfrastructureshow.co.uk

Alternatively to register as a delegate please click here

If you would like to read more articles like this then please click here.

 

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The hard and soft of SuDS

Official Media Partner

Traditionally, drainage techniques were developed to direct surface water away from specific areas (such as dwellings) and keep spaces safe, clean and easy to manage. However, as we continue to develop over open green land, there are fewer places for water to go.

In addition, we are experiencing more extreme weather events (it’s raining more intensely, for longer, and more frequently). These factors combine to create the devastating flooding events which we see on an increasingly regular basis.

Sustainable Drainage Systems (SuDS) are a series of design methods and philosophies which aim to emulate natural drainage processes. The principle is that rainwater should be collected where it lands and, instead of channelling it away as quickly as possible, it should be held back and released at a controlled rate. This reduces the peak flows that occur during a storm event, meaning that existing sewers and watercourses are better able to cope with the demand.

Another key advantage SuDS have over traditional drainage techniques is their ability to improve water quality. As surface water travels over roads or pathways, it frequently picks up a variety of both chemical and biological pollutants. In a traditional drainage system this dirty water then needs to be transported to a different location to be treated; however, in a Sustainable system, many of the pollutants are removed and the water is cleansed as it flows through the system.

Broadly, SuDS fall into two categories – hard and soft. The integration of a variety of different techniques usually provides the best solution; a practical, useable space that invites water in and manages it efficiently while also providing an attractive area that people want to spend time in.

In many ways, soft SuDS are the ideal. These include attenuation ponds, rills and swales that have been carved into the landscape to collect volumes of water in a storm event and let it soak naturally down into the ground where it replenishes the water table. These are frequently planted with hardy, perennial, drought-resistant vegetation which is selected to survive regardless of the weather conditions. These provide a number of benefits. The vegetation not only slows down the flow of water by creating a “leaky dam”, but also maximises the cleansing potential of the system. They can create screens which hide less attractive, functional elements of the landscape, or they can be designed to be an attractive feature in their own right. As well as creating pleasant features for people to enjoy, well-planted SuDS also create environments for wildlife and insects which help to maintain healthy ecosystems.

However, soft SuDS can take up significant areas of land. This may be simply unavailable, or developers may be unwilling to give over expensive land for such purposes. In these circumstances, “hard SuDS” provide an effective, pragmatic compromise. An example of hard SuDS is permeable paving. There are various different type of permeable paving systems, but all varieties follow the same principle: a hardstanding surface which accepts heavy loads and looks the same as either macadam, concrete or block paving, but also allows rainwater to soak through the surface into the ground below or specially designed storage. Although this kind of system doesn’t provide the biodiversity and amenity benefits of a well-designed soft SuDS, it does provide a dual-purpose drainage solution that links an attractive, loadbearing landscaping product with a drainage system which cleans and stores large volumes of water.

Permeable block paving is one of the most popular forms of permeable surfacing. It comprises concrete units which fit together to create an attractive paved surface that looks and performs just like ordinary block paving. However, special nibs on the side of the blocks create joints through which rainwater flows directly into a specially prepared sub-base. Once there, the water can either infiltrate directly into the ground at source, or, if that’s not possible, be channelled away to a receiving watercourse at a controlled rate. In addition to removing large volumes of runoff from entering our already overburdened sewers, a combination of mechanical filtering and chemical biodegradation that occurs naturally in the sub-base ensures that pollutants are largely removed from the water in the sub-base before it is released. This combination of reducing water quantity and improving water quality makes permeable block pavements an excellent example of good SuDS.

Greater understanding of SuDS, along with the increasingly wide range of products available, mean that landscapers are now changing their approach to water management. Instead of designing water out of their projects, burying it underground and out of site, enlightened landscape designers are now inviting water into their designs – creating shared spaces which make a feature of the fresh, clean water that flows through them. The ability to blend hard and soft landscaping techniques results in easy to maintain places which are as functional as they are beautiful.

Chris Griffiths is SuDS Development manager for the UK’s largest landscaping company, Marshalls plc.

Find out more about SuDS implementation at the UK Infrastructure Show: book here

 

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Five trends in data centre construction and design

UKIS Gold Sponsor: Enterprise Ireland

According to a new Enterprise Ireland White Paper, produced in conjunction with the Data Centre Dynamics Group, the population’s insatiable appetite for secure, connected, mobile information has led to the evolution of ‘hyperscale facilities’, which has important implications for data centre procurement, design and construction.

Below, John Hunt, Senior Market Advisor at Enterprise Ireland, explores the trends which will affect the future of data centre construction and design.

John Hunt

Ireland has a competitive edge as one of the principal data centre hubs for many of the world’s technology giants, including Microsoft, Amazon, Google, Dell EMC, Yahoo, IBM, HP, Facebook, Equinix and Digital Reality.

With the rise of technologies in an ever-connected world, data centres are also evolving into larger, denser, more converged and scalable facilities than ever before. Some of the companies we support are increasingly flagging important issues and trends which will affect the sector moving forward.

Below are a few, in particular, to watch out for, to ensure success:

1) The rise of larger facilities due to ‘digital twinning’

As cloud-based technologies, the Internet of Things and 5G continue to drive demand, ‘digital twinning’ between the real and cyber world will continue to grow. In turn, this will be beneficial for smart communities, towns and cities, highlighting an increase in the value of data and demand for larger data facilities.

2) Opportunities for collaboration between hyper-scale facilities and smaller data centres

Make sure you capitalise on parallels between smaller and larger data centre facilities, such as the importance of the cloud and new smarter technologies. There may also be opportunities for collaboration and shared knowledge to be considered.

3) Digital transformation and edge computing

Edge computing has risen to the forefront of the debate in recent years as smart cities, the Internet of Things and ‘connected everything’ place a focus on not only the speed at which data is analysed, but also how and where that secure capacity is processed and delivered. With edge quickly gaining traction, build sector companies should ensure they are prepared for a new era of digital transformation.

4) Changing business needs

Whether looking to support critical applications or simply manage day-to-day operations, the needs of every company vary. Implement processes to better manage facilities and better juggle in-house and outsourced processes. This will help future-proof facilities.

5) The importance of collaboration

Data centres are a in a state of constant flux, so working with flexible and responsive partners is key to success. Build strong relationships and value your suppliers. Find businesses which are leaders in their specialist areas and which can advise you on innovative technologies. For instance, off-site construction and BIM are gaining momentum, and we’re increasingly seeing UK companies turn to Irish specialists in these areas.

This year and beyond, make sure you keep an eye on the above trends, which will help shape your strategy. In a rapidly evolving sector, stay flexible and adaptable, and success will follow.

Don’t forget to visit Enterprise Ireland at UKIS 2018: Book now.

To book your stand: please call 0845 270 7066 or email exhibitions@ukinfrastructureshow.co.uk

Alternatively to register as a delegate please click here

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Terminating contracts: The common pitfalls

As is well documented now, construction giant Carillion went into liquidation in January 2018. At the time of liquidation, the company’s debts were estimated at around £1.5Bn. It was the UK’s second biggest construction company. One of the key lenders to Carillion, Barclays, voted to provide more money to the company alongside HSBC. But with other banks refusing to lend, the firm was forced to wind up. This has caused uncertainty and legal issues for some companies and provided opportunities for others.

Mark James.

In the aftermath of the collapse, termination of contracts is a more prominent issue than ever. The issues surrounding repudiatory breaches and when companies can terminate contracts has once again been put in the spotlight in a recent case. Whilst not a construction case, the issues regarding termination are to be recognised by the construction industry and companies should take note of the impact.

The recent case of Phones 4U Ltd (in administration) v EE Ltd [2018] emphasises that getting the correct termination clause in a contract is a common risk. The case goes to show that prior to terminating a contract a party must analyse the full extent of the provisions to ensure it is not in breach.

The case revolved around EE terminating a trading agreement. Phones 4U (P4U) was to sell consumer pay-monthly contracts. P4U ceased to trade in September 2014. Clause 14.1 of the agreement gave either party the right, at any time, to terminate with immediate effect by giving notice in writing if there was a material breach committed to the other. EE sent a termination letter to P4U.

Clause 14.1.2 allowed for termination if any party is ‘unable to pay its debts or takes any steps to: initiate a composition, scheme, or other arrangement with any of its creditors.’ It was understood that the appointment of administrators gave EE the right to terminate in writing. However, P4U was also not under a breach of contract or involved in a breach if administrators were appointed.

Following termination of the contract, P4U brought proceedings against EE seeking unpaid commission fees. EE counterclaimed, and stated that P4U’s inability to continue trading amounted to a common law repudiatory breach, allowing it to terminate on the grounds of repudiation and further entitled it to a claim in damages. P4U had failed to engage in normal trading activity as authorised seller of EE products and EE stated this was a repudiatory breach. The amount was in the region of £200m.

The case of Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] established that a repudiatory breach of contract will usually “go to the root of the contract”, “frustrate the commercial purpose” of the contract or “deprive the party not in default of substantially the whole benefit” of the contract. It is usually argued where there has been a fundamental breach of contract.

However, whether this amounted to a repudiatory breach of contract was not really the issue in the P4U case. The issue is what they said in the notice. P4U argued that EE’s counterclaim was unjustifiable because the wording in the original termination letter referred to a contractual right of termination, clause 14.1.2 of the contract, which therefore precluded the right to terminate on the common law grounds of repudiatory breach of contract.

The court agreed with P4U and stated that the termination letter was an express communication of contractual termination, unrelated to the common law right to terminate arising out of repudiatory breach. EE had to show that the contract was terminated by the exercise of its common law right to terminate for a repudiatory breach and it could not.

The letter sent by EE only communicated the contractual termination and it did not matter that EE could have terminated for other reasons. The judge held: “…it communicated unequivocally that EE was terminating in exercise of, and only of, its right to do so under clause 14.1.2, a right independent of any breach. Phones 4U was not accused of breach.”

The judge also commented in his judgment: “…but what EE cannot do is re-characterise the events after the fact and claim that it terminated for breach when that is simply not what it did. Nor can it say that it treated Phones 4U’s renunciation (as now alleged) as bringing the contract to an end when that, again, is just not what actually happened.”

This case, whilst not about a construction contract, shows once again in the wake of the Carillion collapse that termination of contracts can become a contentious issue. Where there are differences in a party’s stance, a terminating party cannot rely upon both contractual and common law termination rights. Termination grounds are mutually exclusive, and the notice must clearly define which grounds are relied upon.

In circumstances such as the P4U case and in many construction cases where there is both a contractual and the common law right to terminate, the terminating party must consider which method of termination will provide them with the best result. Parties can face further disputes should the notice not be supplied in the correct way, or if a party wrongly purports to terminate a contract, which may itself sometimes amount to a repudiatory breach of contract.

Article submitted by Mark James, Partner – Dispute Resolution, Coffin Mew

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